Apple Revamping iPhone, Will Sell Starting at $99

Apple will overhaul its popular iPhone and will price them "aggressively," CNBC has learned, sending its shares down sharply.

At the widely anticipated Apple Developers Conference in San Francisco, the company showed its all new iPhone 3Gs — the "S" stands for speed. The price of the 8 gigabite version dropped to $99, the 16 gigabite version will retail for $199, and the 32 gigabite phone will sell for $299.

Source: Apple

New iPhone 3GS

It's the fastest iPhone yet, working at least twice the speed. It comes equipped with a 3 megapixel camera with an instant focus, and can capture video that can be edited instantly. Users can also now control all of their apps through voice commands.

The phone comes with an improved battery life, lasting 25 to 40 percent longer. It has 100 new features, among which users can now rent and buy movies right from their phones via iTunes. They can access more than 500 best-selling books, and soon they'll also have access to 50 magazines, 170 newspapers and 1 million books through the App Store.

AT&T plans to start selling the new iPhone 3Gs in its stores on June 19.

Apple kicking off its developers conference in San Francisco today, with CNBC's Jim Goldman.

Apple made the new 13- and 15-inch MacBook Pro laptops the introductory part of its developers' conference in San Francisco, where speculation swirled that a new iPhone would be unveiled later in the presentation.

Video: CNBC's Jim Goldman reports on Apple's new lineup, including the iPhone 3Gs, from the WWDC in San Francisco.

The laptop with the 13-inch screen starts at $1,200, and the 15-inch model sells for $1,700 and up — both $300 less than existing similar models.

The company also lowered the price on its ultra-thin MacBook Air to $1,500 from $1,800. Apple's 17-inch MacBook Pro, which was unveiled in January, costs $2,500 and up.

Suspense and speculation had mounted in the months before Apple's annual Worldwide Developers' Conference, with hopes ranging from a cameo by founder and CEO Jobs — out until the end of June on medical leave — to revelations of a game-changing tablet mini-PC or cheaper iPhone.

Jobs, a pancreatic cancer survivor, has not appeared despite speculation he would, after springing his leave of absence on stunned markets in January by saying his health problems were more complex than previously thought.

Despite a slowing product line, worsening consumer spending and an uncertain succession plan, investors have quickly got comfortable with the idea of a Job-less Apple. Shares in the maker of the iPod and iPhone have surged 85 percent since shortly after the bombshell wasdropped on Jan. 14.